As of today; many retail, manufacturing, and logistics businesses will start to re-open (with restrictions) across California. Governor Gavin Newsom outlined specific guidelines for his Phase 2 plan at Thursday’s press conference. It’s understandable to forbid face-to-face interactions at this time, especially since businesses like nail salons have been found as the culprit for the fast spread of Covid-19. San Francisco Mayor London Breed is being a bit more conservative, waiting till May 18th for Phase 2 implementation.
Phase 2 seems to bode well for some small businesses, but what about the service sector?
During the last few months several restaurants have stayed afloat by offering pickup and delivery options and the list keeps growing. Even the Alcoholic Beverage Control (ABC) has alleviated regulations on items like to-go drinks. However, delivery continues to be prohibitively expensive to businesses; as Apps like UberEats and GrubHub are charging obscene margins, generally around 20 to 30%. Customers also pay more for the convenience, but it only hurts restaurants even when these Apps disingenuously claim they’re on the side of small business. San Francisco is also taking steps to alleviate this burden through regulations and allowing restaurants to take over parking spots, outdoor plazas for dining.
At first glance, Hyperflyer may seem like just another product to take margins away from small businesses, but our primary goal is to bring customers to businesses and make the relationship a meaningful one. Instead of collecting on margins, we let the business pass value directly to their customers. Our App relies on incremental business; customers won’t get any benefit from it unless they’re repeat customers and/or advocates, any dollar value the customers gain is completely in control of the business. Our mission is to encourage face-to-face interactions as much as possible, which at this stage of the pandemic is unlikely, but as we launch our product we’ll be focusing primarily on in-person pick-up orders.